As Gold Falls, The Dollar Roars Back

EUR/USD hasn't fallen quite as significantly as gold -- and is still up from earlier this month -- but this may mark a return of confidence to American paper. Or it could just mean a lack of other alternatives.

The dollar has been slowly losing value against the euro all month, as investors contemplate the prospect of QE3. Expectations of a cheaper dollar have provided optimism to investors all year as the crisis in Europe deepens.

The dollar has risen enough in an hour to erase overnight losses on the euro.